Buying a house is not easy for everyone, but it is something everyone dreams of. That is why there are several options to that you can own a home without outright applying for a bank loan. You just have to find the right option for you. One of them is the rent to own modality in which a temporary lease contract is agreed upon and then you can choose to buy eventually. Of course, this can only be done if the house for sale is going to be used for housing and not for other purposes (such as an office).
The Rental Law
The rent to own option was established after the regulations of the rental law were published. In the law, it is defined as “the contract by which the Landlord agrees to assign the use of his property, to use it for housing, for the payment of an agreed monthly rent, for a specified period, at the end of which the Tenant has the right to exercise the option to purchase the property.”
Renting the Property
This modality is aimed at those who want to buy a house, but for various reasons cannot access a loan. These people rent the property for a few years to show that they are capable of making monthly payments and qualifying for a mortgage. This can be done for a period of between 1 to 3 years, after which you can choose to purchase.
The Contract
A person who wants to access this type of rent to own contract must do so through a single form of the lease with the option to purchase property intended for housing. In it, both parties agree on the rental time prior to the purchase option, as well as the monthly amount to be paid and the final price of the house for sale. The tenant will only be able to access the purchase once the agreed time has ended. It is important that the contract is certified by a notary to make it valid.
Conclusion
For those who want to buy a house, the rent to own system is a good option to start building your payment history and credit. In addition, you have nothing to lose because if at the end of the contract, you do not want to make the purchase, you can always withdraw without a penalty. Of course, you must return the property by vacating it and the money that has already been paid will not be returned. Get in contact with Rental Property Management Denver company so that you can secure a home with the possibility of later making the purchase. As a tenant, you will have the first option to do so.
